China's Meituan slips on plan to buy Dingdong's fresh grocery unit

Meituan

06/02/2026 02:58

** Food delivery group Meituan's shares 3690.HK slip 2% to HK$91.9

** Meituan on Thursday said it agreed to buy Chinese fresh grocery e-commerce group Dingdong (Cayman)'s DDL.N China business Dingdong Fresh for $717 mln, in line with its long-term development plan

** Nomura ("neutral" rating on stock) says acquisition at a high premium

** Citi ("Neutral/High Risk") says acquisition is likely to improve Meituan's positioning in grocery retail market, but overall fresh and grocery market landscape remains fragmented and competition remains intense

** "Meituan still faces challenges in its core local commerce and overseas expansion will also take up investment resources" - Citi

** YTD, Meituan stock down 10.6%, while benchmark Hang Seng Index <.HSI) up 3.5%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))